Other analysts, however, believe the cryptocurrency may bounce back, although it needs time to recover from the selloff. Per Jon Pearlstone, publisher of a cryptocurrency-focused newsletter, bitcoin may maintain a bullish trend if it manages to hit $7,000 quickly, without “any [sizable] pullbacks.” If it doesn’t, “much lower prices become a real possibility in the future.

Notably Rob Sluymer, a technical strategist at Fundstrat Global Advisors, seemingly made the right call. He stated:

I expect the next level of support down close to $6,100. It’s pretty early to make the case that you need to go long. It’s got to stabilize first

Rob Sluymer

According to CryptoCompare data, bitcoin bounced off of the $6,100 mark and jumped to $6,400, before correcting to about $6,350 at press time. Curiously, its recent price rise saw it slip over its 50-day moving average.

Mati Greenspan, a senior market analyst at social trading platform eToro, noted that while the 50-day moving average may have failed as a support for the cryptocurrency’s price, on the top the 200-day moving average is “acting as a perfect point of resistance.”